Key Takeaways
- • Axonic Capital, a New York-based structured credit, commercial real estate and systematic fixed income manager with $4.8 billion in assets under management, announced the first close of its inaugural Private Credit Offering in mid-July 2022, with subsequent closings planned through the remainder of the year.
- • The Axonic Private Credit Strategy will offer a closed-end structure targeting commercial real estate loans, CMBS and residential transitional loans (RTL), deploying capital into asset-based cash flows at favorable valuations.
- • Chief Investment Officer and Managing Partner Clay DeGiacinto said the firm is "more optimistic than ever" about the opportunity set, framing the strategy as suited to periods of economic dislocation.
- • Axonic hired Dominick Negrotto as Managing Director on its Business Development team, tasked with fundraising for the Private Credit efforts; he previously worked at Atalaya, Wells Fargo and Advanced Portfolio Management.
Summary
Axonic Capital has held the first close on its inaugural Private Credit Offering, according to a Business Wire release. The New York-based firm, which describes itself as a structured credit, commercial real estate and systematic fixed income specialist with $4.8 billion in assets under management, said the first closing took place in the middle of July 2022. The strategy will hold additional closings throughout the remainder of the year.
The Axonic Private Credit Strategy is designed as an alternative structure for allocators seeking to exploit capital market inefficiencies through a closed-end vehicle. The strategy will target commercial real estate (CRE) loans, commercial mortgage-backed securities (CMBS) and residential transitional loans (RTL). Per the release, it will deploy capital into asset-based cash flows with asymmetric risk-reward profiles at favorable valuations, and the firm's structuring is intended to mitigate default risk through a sufficient margin of safety. The company says these illiquid private credit investments should provide low correlation to public credit markets and give investors access to loans sourced through proprietary channels.
Clay DeGiacinto, Chief Investment Officer and Managing Partner, said the firm is "more optimistic than ever" about the opportunity set, noting that Axonic had anticipated this environment since late 2021. He described private credit as an ideal vehicle during periods of economic dislocation, with the strategy serving as a patient source of capital for dislocations expected in private markets, some of which may be driven by relative value in public markets.
Axonic also recently hired Dominick Negrotto as Managing Director on its Business Development team. Negrotto was previously a Principal on the Business Development and Investor Relations team at Atalaya, an asset-based private credit and special opportunities firm, and earlier a Director on the Capital Introduction team at Wells Fargo and a Managing Director at Advanced Portfolio Management, where he oversaw manager selection and due diligence for alternative investments. Peter Carey, Partner and Head of Business Development, said Negrotto will be instrumental in fundraising for the Private Credit efforts and will benefit the firm's longstanding institutional investors.
Founded in 2010, Axonic offers commercial and residential real estate strategies, systematic fixed income and commercial lending strategies, along with structured credit expertise. The firm manages Limited Partnerships, Separate Accounts and two publicly registered funds, and employs 55 professionals.
The Axonic Private Credit Strategy is designed as an alternative structure for allocators seeking to exploit capital market inefficiencies through a closed-end vehicle. The strategy will target commercial real estate (CRE) loans, commercial mortgage-backed securities (CMBS) and residential transitional loans (RTL). Per the release, it will deploy capital into asset-based cash flows with asymmetric risk-reward profiles at favorable valuations, and the firm's structuring is intended to mitigate default risk through a sufficient margin of safety. The company says these illiquid private credit investments should provide low correlation to public credit markets and give investors access to loans sourced through proprietary channels.
Clay DeGiacinto, Chief Investment Officer and Managing Partner, said the firm is "more optimistic than ever" about the opportunity set, noting that Axonic had anticipated this environment since late 2021. He described private credit as an ideal vehicle during periods of economic dislocation, with the strategy serving as a patient source of capital for dislocations expected in private markets, some of which may be driven by relative value in public markets.
Axonic also recently hired Dominick Negrotto as Managing Director on its Business Development team. Negrotto was previously a Principal on the Business Development and Investor Relations team at Atalaya, an asset-based private credit and special opportunities firm, and earlier a Director on the Capital Introduction team at Wells Fargo and a Managing Director at Advanced Portfolio Management, where he oversaw manager selection and due diligence for alternative investments. Peter Carey, Partner and Head of Business Development, said Negrotto will be instrumental in fundraising for the Private Credit efforts and will benefit the firm's longstanding institutional investors.
Founded in 2010, Axonic offers commercial and residential real estate strategies, systematic fixed income and commercial lending strategies, along with structured credit expertise. The firm manages Limited Partnerships, Separate Accounts and two publicly registered funds, and employs 55 professionals.
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